CHELMSFORD, Mass., Nov. 14, 2022 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the fourth quarter and fiscal year ended September 30, 2022.
Quarter Ended |
Year Ended |
|||||||||||||||||||
Dollars in millions, except per share data |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||||||
2022 |
2021 |
Change |
2022 |
2021 |
Change |
|||||||||||||||
Revenue from Continuing Operations |
$ |
138 |
$ |
137 |
0 |
% |
$ |
555 |
$ |
514 |
8 |
% |
||||||||
Organic growth ex-COVID impacts |
12 |
% |
17 |
% |
||||||||||||||||
Life Sciences Products |
$ |
48 |
$ |
53 |
(9) |
% |
$ |
199 |
$ |
200 |
0 |
% |
||||||||
Life Sciences Services |
$ |
89 |
$ |
84 |
6 |
% |
$ |
356 |
$ |
314 |
13 |
% |
||||||||
Diluted EPS Continuing Operations |
$ |
(0.07) |
$ |
(0.30) |
76 |
% |
$ |
(0.15) |
$ |
(0.39) |
61 |
% |
||||||||
Diluted EPS Total |
$ |
(0.28) |
$ |
0.29 |
(195) |
% |
$ |
28.48 |
$ |
1.49 |
nm |
|||||||||
Non-GAAP Diluted EPS Continuing Operations |
$ |
0.16 |
$ |
0.12 |
34 |
% |
$ |
0.51 |
$ |
0.48 |
6 |
% |
||||||||
Adjusted EBITDA Continuing Operations |
$ |
9 |
$ |
21 |
(55) |
% |
$ |
62 |
$ |
86 |
(27) |
% |
||||||||
Management Comments
Steve Schwartz, President and CEO, stated, "We exit fiscal 2022 having successfully transformed into a standalone life sciences business with significant opportunities ahead of us. We achieved strong double-digit organic growth of 12% in the quarter and 17% in the fiscal year, excluding estimated COVID impacts. In the fourth quarter of fiscal 2022, we regained momentum in our genomics business and saw sustained strength in large-automated stores, which posted another record bookings quarter. We remain focused on execution and on driving broader adoption of our unique offerings.
"We're also pleased to announce that our Board has authorized a new $1.5 billion share repurchase program and we intend to repurchase at least $1 billion of common stock over the coming year, beginning with a $500 million accelerated share repurchase. This program is a testament to our commitment to returning value to shareholders. It underscores our strong capital position, and our view that we have significant upside opportunity. Even with this meaningful repurchase of shares, we expect to have sufficient capital available to deploy for additional growth investment consistent with our long-term strategy, and we will continue to generate value for shareholders as we pursue opportunities to extend our industry leading position.
"We also announced that as part of our ongoing transformation we are nominating two new directors to our board. Both are outstanding life sciences executives with track records of creating value who will stand for election at our next annual shareholder meeting. These nominees will replace two of our directors who will not be standing for re-election."
Summary of Fourth Quarter and Full Year Fiscal 2022 Results
Revenue excludes revenue from the Semiconductor Automation business which was sold on February 1, 2022. Profits related to this business are included in discontinued operations. The Company has referenced in the explanation of revenue the estimated impact of COVID. Estimated impact of COVID includes the estimated revenue contribution from products delivered and services rendered to support COVID testing and research, and estimated constraints on the business due to disruptions in customer demand or the Company's ability to deliver in the COVID environment.
Fourth Quarter, Fiscal 2022
Summary of GAAP Results
Summary of Non-GAAP Results
Full Year, Fiscal 2022
Summary of GAAP Results
Summary of Non-GAAP Results
Cash and Liquidity as of September 30, 2022
Subsequent Events
New Share Repurchase Program
The Company's Board of Directors has approved a share repurchase authorization of $1.5 billion in common stock. The Company intends to repurchase at least $1 billion in common stock over the next year, including an accelerated share repurchase (ASR) program to repurchase approximately $500 million in common stock. Azenta intends to enter into an ASR agreement in the coming days.
Repurchases of the Company's common stock may be made in the open market or through privately negotiated transactions (including the ASR program), or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, subject to market and business conditions, legal requirements, and other factors. This share repurchase authorization does not obligate Azenta to acquire any particular amount of common stock, and share repurchases may be commenced or suspended at any time at the Company's discretion.
Board of Directors Nominations
Today the Company announced that Tina S. Nova, Ph.D. and Dorothy E. Puhy have been nominated for election to its Board of Directors at the Company's 2023 Annual General Meeting. Current directors Mark Wrighton, Ph.D. and Alfred Woollacott, III have stated their intention to retire from the Board and not to stand for re-election. Please refer to the Company's separate press release for further information.
Guidance for Continuing Operations for First Quarter and Full Year Fiscal 2023
The Company announced guidance for continuing operations for the first quarter and full year fiscal 2023.
For the first quarter, revenue is expected to be in the range of $175 to $190 million and non-GAAP diluted earnings per share is expected to be in the range of $0.08 to $0.16. GAAP diluted earnings per share from continuing operations is expected to be in the range of ($0.20) to ($0.12).
For the full year, total revenue is expected to grow approximately 30%.
Conference Call and Webcast
Azenta management will webcast its fourth quarter and full year fiscal 2022 earnings conference call today at 4:30 p.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events, and will be archived online on this website for convenient on-demand replay. In addition, you may call 800-936-4761 (US & Canada only) or +1-212-231-2922 for international callers to listen to the live webcast.
Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets, statements of operations and statements of cash flows.
"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Other forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our focus and execution and adoption of our offerings, our ability to improve or retain our market position, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: the impact of the COVID-19 global pandemic on the markets we serve, including our supply chain, and on the global economy generally; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; our ability to successfully invest the cash proceeds from the sale of our Semiconductor Automation business; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstances on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.
About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally.
Azenta is headquartered in Massachusetts, with operations in North America, Europe and Asia. For more information, please visit www.azenta.com.
AZENTA INVESTOR CONTACTS:
Sara Silverman
Head of Investor Relations
978.262.2635
ir@azenta.com
Sherry Dinsmore
978.262.2400
sherry.dinsmore@azenta.com
AZENTA, INC. |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(unaudited) |
|||||||||||||||
(In thousands, except per share data) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2022 |
2021 |
2022 |
2021 |
||||||||||||
Revenue |
|||||||||||||||
Products |
$ |
42,944 |
$ |
53,115 |
$ |
180,950 |
$ |
181,036 |
|||||||
Services |
94,624 |
83,824 |
374,548 |
332,667 |
|||||||||||
Total revenue |
137,568 |
136,939 |
555,498 |
513,703 |
|||||||||||
Cost of revenue |
|||||||||||||||
Products |
26,478 |
25,118 |
100,044 |
96,678 |
|||||||||||
Services |
52,973 |
45,678 |
199,870 |
173,216 |
|||||||||||
Total cost of revenue |
79,451 |
70,796 |
299,914 |
269,894 |
|||||||||||
Gross profit |
58,117 |
66,143 |
255,584 |
243,809 |
|||||||||||
Operating expenses |
|||||||||||||||
Research and development |
7,647 |
6,599 |
27,542 |
22,412 |
|||||||||||
Selling, general and administrative |
64,704 |
80,453 |
252,065 |
252,101 |
|||||||||||
Restructuring charges |
393 |
332 |
712 |
385 |
|||||||||||
Total operating expenses |
72,744 |
87,384 |
280,319 |
274,898 |
|||||||||||
Operating loss |
(14,627) |
(21,241) |
(24,735) |
(31,089) |
|||||||||||
Interest income |
10,353 |
129 |
20,286 |
632 |
|||||||||||
Interest expense |
(478) |
(552) |
(4,589) |
(2,037) |
|||||||||||
Loss on extinguishment of debt |
— |
— |
(632) |
— |
|||||||||||
Other income (expenses), net |
1,352 |
(16,212) |
(266) |
(16,475) |
|||||||||||
Income (loss) before income taxes |
(3,400) |
(37,877) |
(9,936) |
(48,969) |
|||||||||||
Income tax provision (benefit) |
$ |
1,910 |
$ |
(15,480) |
$ |
1,350 |
$ |
(20,100) |
|||||||
Loss from continuing operations |
(5,310) |
(22,397) |
(11,286) |
(28,869) |
|||||||||||
(Loss) income from discontinued operations, net of tax |
$ |
(15,454) |
$ |
44,202 |
$ |
2,144,145 |
$ |
139,616 |
|||||||
Net (loss) income |
(20,765) |
21,805 |
2,132,859 |
110,747 |
|||||||||||
Basic net (loss) income per share: |
$ |
$ |
$ |
$ |
|||||||||||
Loss from continuing operations |
(0.07) |
(0.30) |
(0.15) |
(0.39) |
|||||||||||
(Loss) income from discontinued operations, net of tax |
$ |
(0.21) |
$ |
0.59 |
$ |
28.63 |
$ |
1.88 |
|||||||
Basic net (loss) income per share |
(0.28) |
0.29 |
28.48 |
1.49 |
|||||||||||
Diluted net (loss) income per share: |
$ |
$ |
$ |
$ |
|||||||||||
Loss from continuing operations |
(0.07) |
(0.30) |
(0.15) |
(0.39) |
|||||||||||
(Loss) income from discontinued operations, net of tax |
$ |
(0.21) |
$ |
0.59 |
$ |
28.63 |
$ |
1.88 |
|||||||
Diluted net (loss) income per share |
(0.28) |
0.29 |
28.48 |
1.49 |
|||||||||||
Weighted average shares used in computing net income per share: |
|||||||||||||||
Basic |
75,010 |
74,330 |
74,897 |
74,229 |
|||||||||||
Diluted |
75,010 |
74,532 |
74,897 |
74,455 |
AZENTA, INC. |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(unaudited) |
|||||
(In thousands, except share and per share data) |
|||||
September 30, |
September 30, |
||||
2022 |
2021 |
||||
Assets |
|||||
Current assets |
|||||
Cash and cash equivalents |
$ |
658,274 |
$ |
227,427 |
|
Short-term Marketable securities |
911,764 |
81 |
|||
Accounts receivable, net |
163,759 |
119,877 |
|||
Inventories |
85,544 |
60,398 |
|||
Derivative asset |
124,789 |
— |
|||
Short-term restricted cash |
382,596 |
7,146 |
|||
Prepaid expenses and other current assets |
132,620 |
51,052 |
|||
Current assets held for sale |
— |
311,385 |
|||
Total current assets |
2,459,346 |
777,366 |
|||
Property, plant and equipment, net |
154,470 |
130,719 |
|||
Long-term marketable securities |
352,020 |
3,598 |
|||
Long-term deferred tax assets |
1,169 |
10,043 |
|||
Goodwill |
513,623 |
469,356 |
|||
Intangible assets, net |
178,401 |
186,534 |
|||
Other assets |
57,093 |
58,068 |
|||
Non-current assets held for sale |
— |
183,828 |
|||
Total assets |
$ |
3,716,122 |
$ |
1,819,512 |
|
Liabilities and Stockholders' Equity |
|||||
Current liabilities |
|||||
Accounts payable |
$ |
38,654 |
$ |
42,360 |
|
Deferred revenue |
39,748 |
25,724 |
|||
Accrued warranty and retrofit costs |
2,890 |
2,330 |
|||
Accrued compensation and benefits |
41,898 |
33,183 |
|||
Accrued income taxes payable |
28,419 |
8,711 |
|||
Accrued expenses and other current liabilities |
78,937 |
103,841 |
|||
Current liabilities held for sale |
— |
128,939 |
|||
Total current liabilities |
230,546 |
345,088 |
|||
Long-term debt |
— |
49,677 |
|||
Long-term tax reserves |
1,684 |
1,973 |
|||
Long-term deferred tax liabilities |
64,555 |
13,030 |
|||
Long-term pension liabilities |
261 |
705 |
|||
Long-term operating lease liabilities |
49,227 |
45,088 |
|||
Other long-term liabilities |
6,463 |
6,173 |
|||
Non-current liabilities held for sale |
— |
32,444 |
|||
Total liabilities |
352,736 |
494,178 |
|||
Stockholders' Equity |
|||||
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding |
— |
— |
|||
Common stock, $0.01 par value - 125,000,000 shares authorized, 88,482,125 shares issued and |
885 |
878 |
|||
Additional paid-in capital |
1,992,017 |
1,976,112 |
|||
Accumulated other comprehensive income |
(83,916) |
19,351 |
|||
Treasury stock at cost - 13,461,869 shares |
(200,956) |
(200,956) |
|||
Retained earnings (accumulated deficit) |
1,655,356 |
(470,051) |
|||
Total stockholders' equity |
3,363,386 |
1,325,334 |
|||
Total liabilities and stockholders' equity |
$ |
3,716,122 |
$ |
1,819,512 |
AZENTA, INC. |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
(unaudited) |
||||||
(In thousands, except share and per share data) |
||||||
Year Ended |
||||||
September 30, |
||||||
2022 |
2021 |
|||||
Cash flows from operating activities |
||||||
Net income |
$ |
2,132,859 |
$ |
110,747 |
||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation and amortization |
53,702 |
65,333 |
||||
Impairment of intangible assets |
— |
13,364 |
||||
Stock-based compensation |
10,666 |
27,456 |
||||
Amortization of premium on marketable securities and deferred financing costs |
(1,894) |
225 |
||||
Deferred income taxes |
24,469 |
(17,265) |
||||
Loss on extinguishment of debt |
632 |
— |
||||
(Gain) loss on disposals of property, plant and equipment |
(21) |
260 |
||||
(Gain) loss on sale of divestiture, net of tax |
(2,130,265) |
948 |
||||
Fees paid stemming from divestiture |
(52,461) |
— |
||||
Taxes paid stemming from divestiture |
(431,600) |
— |
||||
Changes in operating assets and liabilities, net of acquisitions and divestiture: |
||||||
Accounts receivable |
(31,397) |
(69,643) |
||||
Inventories |
(66,629) |
(50,443) |
||||
Accounts payable |
(3,926) |
30,967 |
||||
Deferred revenue |
16,599 |
(3,939) |
||||
Accrued warranty and retrofit costs |
303 |
54 |
||||
Accrued compensation and tax withholdings |
11,404 |
7,298 |
||||
Other current assets and liabilities |
1,513 |
34,495 |
||||
Net cash (used in) provided by operating activities |
(466,046) |
$ |
149,857 |
|||
Cash flows from investing activities |
||||||
Purchases of property, plant and equipment |
(73,435) |
(52,805) |
||||
Purchases of technology intangibles |
(4,000) |
— |
||||
Purchases of marketable securities |
(1,975,599) |
(151) |
||||
Sales and maturities of marketable securities |
705,384 |
121 |
||||
Proceeds from divestiture, net of cash transferred |
2,939,116 |
— |
||||
Acquisitions / dispositions, net of cash acquired |
(125,876) |
(93,712) |
||||
Adjustment from proceeds from divestiture |
— |
(1,802) |
||||
Settlement (issuance) of note receivables |
— |
2,000 |
||||
Net cash provided by (used in) investing activities |
1,465,590 |
$ |
(146,349) |
|||
Cash flows from financing activities |
||||||
Proceeds from issuance of common stock |
5,245 |
5,812 |
||||
Principal payments on debt |
(49,725) |
(828) |
||||
Payments of finance leases |
(388) |
(1,164) |
||||
Payment for contingent consideration related to acquisition |
(10,400) |
— |
||||
Common stock dividends paid |
(7,494) |
(29,726) |
||||
Net cash used in financing activities |
$ |
(62,762) |
$ |
(25,906) |
||
Effects of exchange rate changes on cash and cash equivalents |
(180,819) |
5,205 |
||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
755,963 |
(17,193) |
||||
Cash, cash equivalents and restricted cash, beginning of period |
285,333 |
302,526 |
||||
Cash, cash equivalents and restricted cash, end of period |
1,041,296 |
$ |
285,333 |
|||
Supplemental disclosures: |
||||||
Cash paid for interest |
469 |
1,435 |
||||
Cash paid for income taxes, net |
$ |
482,090 |
$ |
38,020 |
||
September 30, |
September 30, |
|||||
2022 |
2021 |
|||||
Cash and cash equivalents of continuing operations |
658,274 |
227,427 |
||||
Cash and cash equivalents included in assets held for sale |
— |
45,000 |
||||
Short-term restricted cash |
382,595 |
7,145 |
||||
Long-term restricted cash included in other assets |
427 |
5,761 |
||||
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash |
$ |
1,041,296 |
$ |
285,333 |
||
Notes on Non-GAAP Financial Measures
Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.
Quarter Ended |
||||||||||||||||||
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
||||||||||||||||
per diluted |
per diluted |
per diluted |
||||||||||||||||
Dollars in thousands, except per share data |
$ |
share |
$ |
share |
$ |
share |
||||||||||||
Net loss from continuing operations |
$ |
(5,310) |
$ |
(0.07) |
$ |
(7,015) |
$ |
(0.09) |
$ |
(22,397) |
$ |
(0.30) |
||||||
Adjustments: |
||||||||||||||||||
Amortization of intangible assets |
8,801 |
0.12 |
7,557 |
0.10 |
9,515 |
0.13 |
||||||||||||
Impairment of intangible assets |
— |
— |
— |
— |
13,364 |
0.18 |
||||||||||||
Restructuring charges |
393 |
0.01 |
23 |
0.00 |
332 |
0.00 |
||||||||||||
Merger and acquisition costs |
6,959 |
0.09 |
1,662 |
0.02 |
8,427 |
0.11 |
||||||||||||
Rebranding and transformation costs |
536 |
0.01 |
289 |
0.00 |
827 |
0.01 |
||||||||||||
Indemnification asset release |
— |
— |
— |
— |
16,007 |
0.21 |
||||||||||||
Tax adjustments (1) |
2,510 |
0.03 |
8,417 |
0.11 |
(10,345) |
(0.14) |
||||||||||||
Tax effect of adjustments |
(2,130) |
(0.03) |
(2,143) |
(0.03) |
(6,967) |
(0.09) |
||||||||||||
Non-GAAP adjusted net income from continuing |
$ |
11,759 |
$ |
0.16 |
$ |
8,790 |
$ |
0.12 |
$ |
8,763 |
$ |
0.12 |
||||||
Stock based compensation, pre-tax |
(49) |
(0.00) |
3,485 |
0.05 |
5,138 |
0.07 |
||||||||||||
Tax rate |
15 |
% |
— |
15 |
% |
— |
15 |
% |
— |
|||||||||
Stock-based compensation, net of tax |
(42) |
(0.00) |
2,962 |
0.04 |
4,367 |
0.06 |
||||||||||||
Non-GAAP adjusted net income excluding stock- |
$ |
11,717 |
$ |
0.16 |
$ |
11,752 |
$ |
0.16 |
$ |
13,131 |
$ |
0.18 |
||||||
Shares used in computing non-GAAP diluted net |
— |
75,010 |
— |
74,989 |
— |
74,532 |
Year Ended |
|||||||||||||
September 30, 2022 |
September 30, 2021 |
||||||||||||
per diluted |
per diluted |
||||||||||||
Dollars in thousands, except per share data |
$ |
share |
$ |
share |
|||||||||
Net loss from continuing operations |
$ |
(11,286) |
$ |
(0.15) |
$ |
(28,869) |
$ |
(0.39) |
|||||
Adjustments: |
|||||||||||||
Amortization of intangible assets |
32,289 |
0.43 |
37,372 |
0.50 |
|||||||||
Restructuring charges |
712 |
0.01 |
385 |
0.01 |
|||||||||
Tariff adjustment |
(484) |
(0.01) |
5,497 |
0.07 |
|||||||||
Merger and acquisition costs |
17,929 |
0.24 |
20,662 |
0.28 |
|||||||||
Impairment of intangible assets |
— |
— |
13,364 |
0.18 |
|||||||||
Rebranding and transformation costs |
2,741 |
0.04 |
827 |
0.01 |
|||||||||
Indemnification asset release |
— |
— |
16,007 |
0.21 |
|||||||||
Loss on extinguishment of debt |
632 |
0.01 |
— |
— |
|||||||||
Other adjustments |
— |
— |
(83) |
(0.00) |
|||||||||
Tax adjustments (1) |
5,744 |
0.08 |
(11,919) |
(0.16) |
|||||||||
Tax effect of adjustments |
(10,078) |
(0.13) |
(17,314) |
(0.23) |
|||||||||
Non-GAAP adjusted net income from continuing operations |
$ |
38,199 |
$ |
0.51 |
$ |
35,929 |
$ |
0.48 |
|||||
Stock-based compensation, pre-tax |
12,443 |
0.17 |
20,051 |
0.27 |
|||||||||
Tax rate |
15 |
% |
— |
15 |
% |
— |
|||||||
Stock-based compensation, net of tax |
10,577 |
$ |
0.14 |
17,043 |
0.23 |
||||||||
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations |
$ |
48,776 |
$ |
0.65 |
$ |
52,972 |
$ |
0.71 |
|||||
Shares used in computing non-GAAP diluted net income per share |
— |
74,897 |
— |
74,455 |
(1) Tax adjustments during all periods include adjustments to tax benefits related to stock compensation windfalls. These benefits are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting. Tax adjustments for the quarter ended September 30, 2022, include a $4.1M increase to expense related to the exclusion of allocations between continuing operations and discontinued operations.
Quarter Ended |
Year Ended |
||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||||||
Dollars in thousands |
2022 |
2022 |
2021 |
2022 |
2021 |
||||||||||
GAAP net (loss) income |
$ |
(20,765) |
$ |
(9,570) |
$ |
21,805 |
$ |
2,132,859 |
$ |
110,747 |
|||||
Less: Income from discontinued operations |
15,454 |
2,555 |
(44,201) |
(2,144,145) |
(139,616) |
||||||||||
GAAP net (loss) income from continuing operations |
(5,310) |
(7,015) |
(22,397) |
(11,286) |
(28,869) |
||||||||||
Adjustments: |
|||||||||||||||
Less: Interest income |
(10,353) |
(6,822) |
(129) |
(20,286) |
(632) |
||||||||||
Add: Interest expense |
478 |
2,101 |
552 |
4,589 |
2,037 |
||||||||||
Add / Less: Income tax provision (benefit) |
1,910 |
7,293 |
(15,480) |
1,350 |
(20,100) |
||||||||||
Add: Depreciation |
6,087 |
5,253 |
5,055 |
21,864 |
19,488 |
||||||||||
Add: Amortization of completed technology |
1,901 |
1,810 |
1,873 |
7,325 |
8,073 |
||||||||||
Add: Amortization of customer relationships and acquired intangible assets |
6,900 |
5,745 |
7,642 |
24,956 |
29,299 |
||||||||||
Add: Loss on extinguishment of debt |
— |
— |
— |
632 |
— |
||||||||||
Earnings before interest, taxes, depreciation and amortization - Continuing operations |
$ |
1,613 |
$ |
8,365 |
$ |
(22,884) |
$ |
29,144 |
$ |
9,296 |
Quarter Ended |
Year Ended |
||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
September 30, |
|||||||||||
Dollars in thousands |
2022 |
2022 |
2021 |
2022 |
2021 |
||||||||||
Earnings before interest, taxes, depreciation and amortization - Continuing operations |
$ |
1,613 |
$ |
8,365 |
$ |
(22,884) |
$ |
29,144 |
$ |
9,296 |
|||||
Adjustments: |
|||||||||||||||
Add: Stock-based compensation |
(49) |
3,485 |
5,138 |
12,443 |
20,051 |
||||||||||
Add: Restructuring charges |
393 |
23 |
332 |
712 |
385 |
||||||||||
Add: Merger and acquisition costs |
6,959 |
1,664 |
8,427 |
17,929 |
20,662 |
||||||||||
Add: Tariff adjustment |
— |
— |
— |
(484) |
5,497 |
||||||||||
Impairment of intangible assets |
— |
— |
13,364 |
— |
13,364 |
||||||||||
Add: Rebranding and transformation costs |
536 |
289 |
827 |
2,741 |
827 |
||||||||||
Indemnification asset release |
— |
— |
16,007 |
— |
16,007 |
||||||||||
Less: Other adjustments |
— |
— |
— |
— |
(83) |
||||||||||
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations |
$ |
9,452 |
$ |
13,826 |
$ |
21,211 |
$ |
62,485 |
$ |
86,006 |
Quarter Ended |
||||||||||||||||||
Dollars in thousands |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
|||||||||||||||
GAAP gross profit |
$ |
58,117 |
42.2 |
% |
$ |
59,600 |
44.9 |
% |
$ |
66,143 |
48.3 |
% |
||||||
Adjustments: |
||||||||||||||||||
Amortization of completed technology |
1,901 |
1.4 |
1,812 |
1.4 |
1,873 |
1.4 |
||||||||||||
Other adjustment |
289 |
0.2 |
— |
— |
— |
— |
||||||||||||
Non-GAAP adjusted gross profit |
$ |
60,307 |
43.8 |
% |
$ |
61,412 |
46.3 |
% |
$ |
68,016 |
49.7 |
% |
||||||
Life Sciences Products |
Life Sciences Services |
|||||||||||||||||||||||||||||||||||
Quarter Ended |
Quarter Ended |
|||||||||||||||||||||||||||||||||||
Dollars in thousands |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
September 30, 2022 |
June 30, 2022 |
September 30, 2021 |
||||||||||||||||||||||||||||||
GAAP gross profit |
$ |
19,068 |
39.4 |
% |
$ |
21,026 |
44.4 |
% |
$ |
25,329 |
47.7 |
% |
$ |
39,057 |
43.8 |
% |
$ |
38,564 |
45.2 |
% |
$ |
40,815 |
48.7 |
% |
||||||||||||
Adjustments: |
||||||||||||||||||||||||||||||||||||
Amortization of completed technology |
401 |
0.8 |
251 |
0.5 |
132 |
0.2 |
1,500 |
1.7 |
1,562 |
1.8 |
1,741 |
2.1 |
||||||||||||||||||||||||
Other adjustment |
— |
— |
— |
— |
— |
— |
289 |
0.3 |
— |
— |
— |
— |
||||||||||||||||||||||||
Non-GAAP adjusted gross profit |
$ |
19,469 |
40.3 |
% |
$ |
21,277 |
44.9 |
% |
$ |
25,461 |
47.9 |
% |
$ |
40,846 |
45.8 |
% |
$ |
40,126 |
47.0 |
% |
$ |
42,556 |
50.8 |
% |
||||||||||||
Year Ended |
||||||||||||
Dollars in thousands |
September 30, 2022 |
September 30, 2021 |
||||||||||
GAAP gross profit |
$ |
255,584 |
46.0 |
% |
$ |
243,809 |
47.5 |
% |
||||
Adjustments: |
||||||||||||
Amortization of completed technology |
7,325 |
1.3 |
8,073 |
1.6 |
||||||||
Other adjustment |
289 |
0.0 |
(83) |
0.0 |
||||||||
Tariff adjustment |
(484) |
(0.1) |
5,497 |
1.1 |
||||||||
Non-GAAP adjusted gross profit |
$ |
262,714 |
47.3 |
% |
$ |
257,296 |
50.1 |
% |
Life Sciences Products |
Life Sciences Services |
||||||||||||||||||||||
Year Ended |
Year Ended |
||||||||||||||||||||||
Dollars in thousands |
September 30, 2022 |
September 30, 2021 |
September 30, 2022 |
September 30, 2021 |
|||||||||||||||||||
GAAP gross profit |
$ |
89,074 |
44.7 |
% |
$ |
92,560 |
46.4 |
% |
$ |
166,523 |
46.7 |
% |
$ |
151,246 |
48.2 |
% |
|||||||
Adjustments: |
|||||||||||||||||||||||
Amortization of completed technology |
1,122 |
0.6 |
1,117 |
0.6 |
6,202 |
1.7 |
6,957 |
2.2 |
|||||||||||||||
Other adjustment |
— |
— |
— |
— |
289 |
0.1 |
(83) |
(0.0) |
|||||||||||||||
Tariff adjustment |
— |
— |
— |
— |
(484) |
(0.1) |
5,497 |
1.8 |
|||||||||||||||
Non-GAAP adjusted gross profit |
$ |
90,196 |
45.2 |
% |
$ |
93,677 |
46.9 |
% |
$ |
172,530 |
48.4 |
% |
$ |
163,617 |
52.1 |
% |
|||||||
Life Sciences Products |
Life Sciences Services |
|||||||||||||||||
Quarter Ended |
Quarter Ended |
|||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
June 30, |
September 30, |
|||||||||||||
Dollars in thousands |
2022 |
2022 |
2021 |
2022 |
2022 |
2021 |
||||||||||||
GAAP operating loss |
$ |
(141) |
$ |
1,965 |
$ |
6,470 |
$ |
12 |
$ |
688 |
$ |
2,602 |
||||||
Adjustments: |
||||||||||||||||||
Amortization of completed technology |
401 |
251 |
132 |
1,500 |
1,562 |
1,741 |
||||||||||||
Other adjustment |
— |
— |
— |
339 |
— |
— |
||||||||||||
Tariff adjustment |
— |
— |
— |
— |
— |
— |
||||||||||||
Non-GAAP adjusted operating profit |
$ |
260 |
$ |
2,216 |
$ |
6,602 |
$ |
1,851 |
$ |
2,250 |
$ |
4,343 |
Total Segments |
Corporate |
Total |
|||||||||||||||||||||||||
Quarter Ended |
Quarter Ended |
Quarter Ended |
|||||||||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
June 30, |
September 30, |
September 30, |
June 30, |
September 30, |
|||||||||||||||||||
Dollars in thousands |
2022 |
2022 |
2021 |
2022 |
2022 |
2021 |
2022 |
2022 |
2021 |
||||||||||||||||||
GAAP operating profit (loss) |
$ |
(129) |
$ |
2,654 |
$ |
9,072 |
$ |
(14,490) |
$ |
(7,736) |
$ |
(30,313) |
$ |
(14,619) |
$ |
(5,082) |
$ |
(21,241) |
|||||||||
Adjustments: |
— |
||||||||||||||||||||||||||
Amortization of completed technology |
1,901 |
1,813 |
1,873 |
— |
— |
— |
1,901 |
1,813 |
1,873 |
||||||||||||||||||
Amortization of customer relationships and |
— |
— |
— |
6,900 |
5,745 |
7,642 |
6,900 |
5,745 |
7,642 |
||||||||||||||||||
Restructuring charges |
— |
— |
— |
393 |
22 |
333 |
393 |
22 |
333 |
||||||||||||||||||
Tariff adjustment |
— |
— |
— |
— |
— |
13,364 |
— |
— |
13,364 |
||||||||||||||||||
Rebranding and transformation costs |
— |
— |
— |
536 |
289 |
827 |
536 |
289 |
827 |
||||||||||||||||||
Other adjustment |
339 |
— |
— |
(339) |
— |
— |
— |
— |
— |
||||||||||||||||||
Merger and acquisition costs |
— |
— |
— |
6,959 |
1,662 |
8,427 |
6,959 |
1,662 |
8,427 |
||||||||||||||||||
Non-GAAP adjusted operating profit (loss) |
$ |
2,111 |
$ |
4,467 |
$ |
10,945 |
$ |
(41) |
$ |
(18) |
$ |
280 |
$ |
2,070 |
$ |
4,449 |
$ |
11,225 |
Life Sciences Products |
Life Sciences Services |
|||||||||||
Year Ended |
Year Ended |
|||||||||||
Dollars in thousands |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||
GAAP operating profit |
$ |
11,033 |
$ |
21,971 |
$ |
10,784 |
$ |
10,289 |
||||
Adjustments: |
||||||||||||
Amortization of completed technology |
1,122 |
1,117 |
6,202 |
6,957 |
||||||||
Other adjustment |
— |
— |
345 |
(83) |
||||||||
Tariff adjustment |
— |
— |
(484) |
5,497 |
||||||||
Non-GAAP adjusted operating profit |
$ |
12,155 |
$ |
23,088 |
$ |
16,847 |
$ |
22,659 |
Total Segments |
Corporate |
Total |
||||||||||||||||
Year Ended |
Year Ended |
Year Ended |
||||||||||||||||
Dollars in thousands |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
September 30, |
||||||||||||
2022 |
2021 |
2022 |
2021 |
2022 |
2021 |
|||||||||||||
GAAP operating profit (loss) |
$ |
21,817 |
$ |
32,260 |
$ |
(46,552) |
$ |
(63,349) |
$ |
(24,735) |
$ |
(31,089) |
||||||
Adjustments: |
||||||||||||||||||
Amortization of completed technology |
7,324 |
8,073 |
— |
— |
7,324 |
8,073 |
||||||||||||
Amortization of customer relationships and acquired intangible assets |
— |
— |
24,965 |
29,299 |
24,965 |
29,299 |
||||||||||||
Restructuring charges |
— |
— |
712 |
385 |
712 |
385 |
||||||||||||
Tariff adjustment |
(484) |
5,497 |
— |
— |
(484) |
5,497 |
||||||||||||
Impairment of intangible assets |
— |
— |
13,364 |
— |
13,364 |
|||||||||||||
Rebranding and transformation costs |
— |
— |
2,741 |
827 |
2,741 |
827 |
||||||||||||
Other adjustment |
345 |
(83) |
(345) |
— |
— |
(83) |
||||||||||||
Merger and acquisition costs |
— |
— |
17,929 |
20,662 |
17,929 |
20,662 |
||||||||||||
Non-GAAP adjusted operating profit (loss) |
$ |
29,002 |
$ |
45,747 |
$ |
(550) |
$ |
1,188 |
$ |
28,452 |
$ |
46,935 |
The Company has referenced in the explanation of revenue the estimated impact of COVID. Estimated impact of COVID includes the estimated revenue contribution from products delivered and services rendered to support COVID testing and research, and estimated constraints on the business due to disruptions in customer demand or the Company's ability to deliver in the COVID environment.
Life Sciences Products |
Life Sciences Services |
Azenta Total |
|||||||||||||||||||||||||
Year Ended |
Year Ended |
Year Ended |
|||||||||||||||||||||||||
Dollars in millions |
September 30, 2022 |
September 30, 2021 |
Change |
September 30, 2022 |
September 30, 2021 |
Change |
September 30, 2022 |
September 30, 2021 |
Change |
||||||||||||||||||
Revenue |
$ |
199 |
$ |
200 |
(0) |
% |
$ |
356 |
$ |
314 |
13 |
% |
$ |
555 |
$ |
514 |
8 |
% |
|||||||||
Acquisitions/divestitures |
7 |
— |
(4) |
% |
1 |
— |
— |
% |
8 |
— |
(2) |
% |
|||||||||||||||
Currency exchange rates |
(6) |
— |
3 |
% |
(5) |
— |
2 |
% |
(11) |
— |
2 |
% |
|||||||||||||||
Organic revenue |
198 |
200 |
(1) |
% |
360 |
314 |
15 |
% |
558 |
514 |
9 |
% |
|||||||||||||||
Estimated impact of COVID |
22 |
45 |
14 |
% |
(1) |
8 |
3 |
% |
22 |
53 |
8 |
% |
|||||||||||||||
Organic revenue ex COVID |
$ |
176 |
$ |
155 |
13 |
% |
$ |
361 |
$ |
306 |
18 |
% |
$ |
537 |
$ |
461 |
17 |
% |
|||||||||
Life Sciences Products |
Life Sciences Services |
Azenta Total |
|||||||||||||||||||||||||
Quarter Ended |
Quarter Ended |
Quarter Ended |
|||||||||||||||||||||||||
Dollars in millions |
September 30, 2022 |
September 30, 2021 |
Change |
September 30, 2022 |
September 30, 2021 |
Change |
September 30, 2022 |
September 30, 2021 |
Change |
||||||||||||||||||
Revenue |
$ |
48 |
$ |
53 |
(9) |
% |
$ |
89 |
$ |
84 |
6 |
% |
$ |
138 |
$ |
137 |
0 |
% |
|||||||||
Acquisitions/divestitures |
4 |
— |
(8) |
% |
— |
— |
— |
% |
4 |
— |
(3) |
% |
|||||||||||||||
Currency exchange rates |
(3) |
— |
7 |
% |
(3) |
— |
3 |
% |
(6) |
— |
4 |
% |
|||||||||||||||
Organic revenue |
48 |
53 |
(10) |
% |
92 |
84 |
10 |
% |
139 |
137 |
2 |
% |
|||||||||||||||
Estimated impact of COVID |
— |
11 |
23 |
% |
1 |
2 |
1 |
% |
1 |
12 |
10 |
% |
|||||||||||||||
Organic revenue ex COVID |
$ |
48 |
$ |
42 |
13 |
% |
$ |
91 |
$ |
82 |
11 |
% |
$ |
139 |
$ |
125 |
12 |
% |
SOURCE Azenta, Inc.